Pick Your Funding Partners Carefully
The phrase “do what you say you are going to do” is underappreciated. Fulfilling your commitments, both verbally and in writing, is the most basic business principle.
Doing what you say you are going to do sure seems sophomoric doesn’t it? Unfortunately, in the world of chaos, greed, competition and economic uncertainty this principle can be misplaced.
Not fulfilling even small commitments is very harmful to your integrity and reputation.
“I will call you later today”
Before one opens their mouth, they should really analyze whether or not they can perform. This is true both personally and professionally. “I can raise the funds for this business transaction”, “I will call you later today”, “I can get it done”, “I will meet you and 10:00”, etc. All comments thrown out there casually yet create deep obligations for the communicator. The minute these are said, construction should already be brewing for performance.
The true leaders in business are men and women of their words. What happened to the handshake deal? Our community has crafted protections behind the “handshake” that, not only creates noise and distraction, but allows for room and non-performance. I treat everything as a handshake deal. Frankly, all I have is my handshake and reputation. Reputation and integrity are irreplaceable and should be treated with the utmost respect and be held on a high pedestal.
I have been on the verge of several business transactions that only came crashing down due to non performance. Non-performance from empty promises. Business people “talking the talk” but not “walking the walk”. Tremendous amounts of time and risk are involved with preparing and structuring financial transactions and performance from ALL partners is the key to success.
The minute there exists a weak link in this team is the minute your efforts become wasted and your risks increase.
Performance is Profit
In the world of business transactions; whether it be large commercial real estate deals, single family residential fix and flips, funding operating business ventures, structuring complicated tax deals, placing large debt instruments into the capital markets, structuring and selling private placement offerings, lending or borrowing hard money funds, or just performing as an employee of a large institution, reliance on other individuals is crucial for success.
“Two head are better than one” and division and focus of expertise is an important component to efficiency and productivity.
So, pick your partners right, especially on the funding side of things. Performance is profit. Don’t work with the cowboys with no cattle.
